Difference in Bank Balance as per Pass Book and Cash Book may arise on account of_____________?

Accounting Mcqs 30/10/2020

A. Cheque issued but not presented
B. Cheque issued but dishonoured
C. Cheque deposited and credited by bank
D. Both A. and B.

Differences in Bank Balance as per Bank Pass Book and Cash Book arise due to many reasons. Few of them are Cheques issued (a credit entry in Cash Book made) but not presented for payment (so no corresponding entry in Pass Book).
Cheques issued (a credit entry in Cash Book made) but dishonoured (so no corresponding entry made in Pass Book).
In case of cheques deposited and credited by bank, entries in both Cash Book and the Bank Pass book are made, hence no difference arises. Hence option D. is the right option. Only in situations A. and B. result in difference

Related Mcqs:

    An asset must be _______ by the business to be shown as an asset in its “balance sheet”
    A. Possessed B. Owned C. Controlled D. Used...
    Which of following best describes the increase in equity expands___________?
    A. Business operations B. cash outflows C. Inflows of cash D. Appropriation expenses...
    Which of the following is true?
    A. Error of casting affects personal accounts B. Omission of a transaction from a subsidiary record affects only one account C. Error of carry forward affects two accounts D. Error of principle involves an incorrect allocation of expenditure or receipt between capital and revenue...
    Which of the following is an item of capital expenditure?
    A. Research and development costs during the year B. Interest on borrowed fund utilized for acquisition of Office Furniture C. Installation charges paid in conjunction with the purchase of Office Equipment D. Monthly rent of a machinery used in the business...
    Debit balance as per bank pass book mean_____________?
    A. Surplus cash B. Bank Overdraft C. Terms deposits with bank D. None of these...

Leave a Reply

Your email address will not be published. Required fields are marked *